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Have you ever walked into a small cafe or bar hoping to get a breakfast croissant or cup of coffee and realize that it’s a “cash only” establishment? So instead of taking a bite or a sip of the croissant or coffee you have been craving since you woke up, you now have to find the nearest ATM to withdraw money. As you withdraw money from the ATM you can’t help but think why this particular establishment is “cash only.”
At this point, you’re weighing all the pros and cons of running a cashless business but you can’t come up with a definitive reason why this shop owner did this. After you read this you will have a better understanding of why this shop owner and other shop owners decided to go stick with cash only instead of using a point of sale system or going cashless. Before we break down the advantages and disadvantages of running a cashless business we must understand how and when the cashless point of sale systems emerged.
Those that are younger than 70 years of age, won’t remember a period of their lives without credit cards. Even though they might have not used them, they certainly existed. Credit cards or cashless transactions became relevant in 1950 and ever since credit cards have become a major facet in our lives. However, back in 1950 cash was king, but as the use of credit cards or other wireless transactions becomes more prevalent, cash transactions are becoming more obsolete. At one point in time cash was king, and in some aspects it still is. However, cashless transactions may soon take over the throne.
To support that claim, only one in four people carry cash and surprisingly there are 123.5 billion non-cash payments that are made every year. These are clear indicators that cashless transactions are here to stay. However, going cashless may not be best for your business. Going cashless has the ability to exclude some of your customers and raise security concerns, but sticking with a cash system will enable businesses to steer clear of extraneous fees. Overall there are some advantages and disadvantages to going cashless.
That being said, take the time to determine what is right for you and your business. To alleviate your stress about choosing what is best for your business, feel free to use this Fundera infographic as a reference when making this big business decision.
Please include attribution to Fundera.com with this graphic.
